Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Life Sciences Biotech Smaller Cap High Risk Stocks Investing Binge - 24th Jun 21
Central Banks to Keep Buying Gold - 24th Jun 21
Will Gold Survive Hawkish Fed? - 24th Jun 21
The Clean Energy Compound That Could Change The World - 24th Jun 21
Everybody's Getting Rich (and Having Fun) Except Me - 24th Jun 21
WESTERN DIGITAL WDC Stock Trend Analysis - CHIA! - Risk 1 - 23rd Jun 21
AMC Is the Best-Performing Stock in America: Don’t Buy It - 23rd Jun 21
Stock Market Calling the Fed‘s Bluff - 23rd Jun 21
Could Bitcoin Price CRASH Target A Bottom Below $7500? - 23rd Jun 21
Bitcoin and cryptos: Your 'long-term investment'? - 23rd Jun 21
Unlocking The Next Stage Of The Hydrogen Boom - 23rd Jun 21
USDT Ponzi Scheme FINAL WARNING To EXIT Before Tether Collapses Crypto Exchange Markets - 22nd Jun 21
Stock Market Correction Starting - 22nd Jun 21
This Green SuperFuel Could Change Everything For the $14 Trillion Shipping Industry - 22nd Jun 21
Virgin Media Fibre Broadband Installation - What to Expect, Quality of Wiring, Service etc. - 21st Jun 21
Feel the Inflationary Heartbeat - 21st Jun 21
The Green Superfuel That Could Disrupt Global Energy Markers - 21st Jun 21
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Canadian Gold Miners and How to Invest With $5,000 to $10,000 Revisited

Commodities / Gold & Silver Stocks Feb 10, 2009 - 08:41 AM GMT

By: Dudley_Baker

Commodities

Perhaps you recall about one year ago we had a serious of articles, How to Invest….

We can all agree it has been one hell of a year so we thought it timely to revisit our previous article and see what new light we can shed on your investments decisions. Many of you have lost a substantial amount of monies over the last year, however we encourage you to look at the bright side in that now with the market for the junior's and smaller exploration companies down substantially, your investment dollars allow you to purchase more shares at the current depressed prices.


We feel your pain and frankly we have taken a bath ourselves on some of our positions, but we are confident in the coming months and next few years that all of us investing in the natural resources and commodity sectors will richly rewarded. This is the time to take a calculated risk with some of your investment dollars.

We realize not all investors have 'deep pockets' to invest and we suspect many investors

are intrigued with the natural resource sector but all too often hear only of the large companies, i.e., Newmont Mining, Barrick Gold, and Agnico-Eagle. You might assume that it takes a lot of money to invest in this sector with the current share prices of these companies. Quite the contrary.

In our first article published in March 2008, How to Invest With $5,000 to $10,000 , we cover the definitions for warrants, options and LEAPS and explore the use of all three as possibilities for investing. We will not repeat ourselves in this current article and encourage you to revisit our original article for some background information.

With the current market environment, many options, LEAPS and warrants are trading for pennies, yes just pennies, but of course we are partial to the long-term warrants with remaining lives of over 2, 3 and 4 years and longer. The opportunities with some of these long-term warrants on companies which we like are staggering and could easily, in our opinion, reap gains of 500% and more. True, not all of the companies with warrants trading as well as many other small exploration companies will survive.

Proper money management and allocation of your investment dollars is critical to your over all success. So let's explore a few ideas for you.

With $5,000 we would suggest you allocate this to four different investments. While this may not seem like much to many of you, remember, we are striving for gains of 500% and more. So many of juniors and warrants are at give-a-way prices and offer us these unusual opportunities. Current prices of $0.10 or $0.20 allows you to buy 5,000 to 10,000 shares or warrants, if not more for each of the four positions.

If you have $10,000 to invest we would suggest you allocate this amount to 5 different investments. Remember, we realize that one or two of these 'might not' work out so we must

diversify even with this relatively small amount of money.

You say you do not have any monies to invest. I challenge you to review your portfolio and perhaps make some difficult choices. Frankly, we disagree with some of the analysts recommending selling positions which are trading only for pennies. A hold would be a wiser decision we believe as many of these companies will come back allowing investors to recover their investments. Yes, you may raise some monies by selling but the amount after commissions may not be worth the effort. We suggest that all investors periodically review their holdings and make some decisions. Remember, we are looking for 500% gain and if you feel your current holdings do not offer this potential return, perhaps you should sell the position and move-on to more promising investments.

We'd like to rap this up by showing you a chart of the TSX Venture relative to gold which gives us a good picture of just how bad the juniors and explorations companies have performed in the last year. It looks to us like it is time for the juniors to start out performing gold.

For those readers interested in learning more about warrants we encourage you to visit our website .

Dudley Pierce Baker
Guadalajara/Ajijic, México
Email: info@preciousmetalswarrants.com
Website: PreciousMetalsWarrants

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders and much, much more. We do not make any specific recommendations in our service. We do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

Disclaimer/Disclosure Statement:PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

Dudley Pierce Baker Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in